Bottom line
- Total investment $41K – $55K including a $35K franchise fee, 8.0% ongoing royalty.
- Average unit revenue of $122K/year (median $86K).
- Rated STRONG with a risk score of 52/100. SBA loan default rate of 0.0% across 14 loans (below the industry average).
- System contracting at -9.3% CAGR over 3 years. Investigate whether closures are franchisor-driven (consolidation) or franchisee-driven (economics).
Item 1 · who you're contracting with
The Franchisor
Yale framework · single-unit ROIC
Returns Analysis
Pulls Item 7 (investment) and Item 19 (revenue) from this brand's FDD into the Yale unlevered-ROIC formula. Override any input to stress-test it against your own assumptions.
The model · Yale framework
What would one National Property Inspections unit return on the cash you put in?
Unlevered ROIC · per unit
32%
In Yale's "attractive" band (30–60%)
Levered LBO scenario · Yale Crease Capital framing
What would 25 National Property Inspections units return on equity?
Equity IRR · 5-yr
49.9%
7.57× MOIC
Year-1 DSCR
1.88×
EBITDA ÷ debt service
Equity required
$147K
on $734K purchase
Total debt
$587K
SBA $0.4M + senior + seller note
Overview
About
Franchisees conduct residential and commercial property inspections for home buyers, sellers, and real estate agents. Daily operations include scheduling inspections, conducting on-site evaluations using specialized equipment, documenting findings, and generating detailed reports. Most revenue derives from inspection fees ($300-$600 per inspection) with potential ancillary services like radon testing or mold assessments.
Item 7 · what it costs
The Vitals
Item 19
Financial Performance
Item 20 · unit dynamics
The Growth Chart
Year-over-year franchised unit counts and net change. Source: FDD Item 20.
Item 20 · 20 states with active franchisees
The Territory Map
Derived from franchisee contact records. Shows states with at least one current operator — not where the franchisor is registered to sell new units (that data is re-extracting in a future refresh).
States derived from franchisee phone area codes (Item 20). Approximate — ported numbers may show the original state, not the franchisee's current location.
Government records
SBA Loan Data
Aggregated from SBA 7(a) loan disclosures, public data unique to FranchiseVerdict.
FranchiseVerdict rating + FDD Items 3, 5, 6, 12, 17
Risk & Legal
Shrinking franchise system with undisclosed profitability, fixed-fee royalty structure, and corporate going concern issues present material risk to $41k-$55k investment.
Score breakdown · what drove the 52 / 100 rating
- 01MINORUnit count declining 4.4% YoY (194 units) suggests system contraction and market saturation concerns
- 02MEDNet income not disclosed in Item 19 — inability to validate true profitability against $41k-$55k investment
- 03MINORRoyalty structure with $300-$500 minimum monthly creates fixed cost floor regardless of revenue performance
- 04MINORAverage revenue of $122k against 8% royalty ($9,786/yr) plus minimum fees ($3,600-$6,000/yr) leaves thin margin for expenses
- 05HIGHGoing Concern indicator is False — potential financial instability at corporate level affecting franchisee support
- 06HIGHNo litigation disclosed but declining unit base suggests possible franchisor-franchisee disputes or operational issues
Severity inferred from the FDD text · not a regulatory classification
FDD Items 5, 6, 12, 17 · continued from Risk & Legal
Contract & Territory Detail
Item 11
Training & Operations
Item 20
Franchisee Contacts
Phone numbers extracted directly from this brand's FDD Item 20. After purchase, you'll also receive a list of validation questions tailored to this brand.
Franchisee contacts
90 numbers
One-time purchase · CSV download · Validation questions included
FDD download
National Property Inspections · FDD (2025) PDF